Mortgage Completion - Mortgage Advice

What happens on Completion?

On the day that contracts are exchanged, a process is kicked off which finalises the transfer of the ownership of the property. Hopefully, if you are selling your home you will exchange on that as well as the home you are buying on the same day. Whatever happens, if you are buying a home, the exchange of contract means that you cannot get out of it without losing your deposit. The completion date is the next important date.

Between the exchange and completion, your solicitor will carry out final checks, such as finding out if there are any mortgage against the property which have been undisclosed (the property can be repossessed if mortgage payments on it have been defaulted on). The transfer document will then be prepared at this time. Whilst the usual time between exchange and completion is 28 days, it could be as short as 14 days or even on the same day in exceptional cases.

Should the vendor have agreed to make any repairs, you should check they are properly carried out. You should then arrange for your mail to be re-directed, prepare change of address cards and notify utility providers so that they can give you a final bill at your current address and connect your supply when you move into your new place.

On completion day, the balance of the money on the property must be transferred from buyer to the seller. This includes any funds from the mortgage lender plus any deposit you have to pay (may have already been paid on exchange of contracts) to the seller. The buyer or the buyer's solicitor receives the deeds for the property and the keys are handed over, once the money has been paid in, so you can start to move into your new home.

You are not only liable for the balance being met by the mortgage or the sale of your existing property. You also need to pay whatever sum there is to redeem the mortgage on your old property. You will need to pay the stamp duty, land registry, and the first premium of any compulsory insurance policies.

Insurance policies could be buildings cover, which is normally insisted on by lenders, and any mortgage indemnity guarantee policy which is sometimes enforced upon those borrowing over 90% of the property.

Should you move in and discover that serious damage has been done to the property or items previously included in the contract are not there, you have to either sort it out there and then, or take legal action once you move in.

Finally, you will need to pay your solicitor's fees, having received an estimate in advance, and ensured a cleared cheque of banker's draft is available.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

© AskFinancially.com 2009

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